JP Morgan economist Ben Jarman said the negative impact of the budget cuts was most likely to appear in a pullback in consumer spending rather than hitting business confidence.

"Reports from retailers suggest this is already happening, compounded by benign winter weather that has depressed change of season clothing purchases," he said

"The key will be the persistence of this slump, given the possibility that the final budget package that will clear the Senate is less negative for household finances than the package that was originally announced."

Economists felt the steady business confidence result was difficult to reconcile with the fall in hiring intentions.

Job ads on the internet and in newspapers fell for the first time in five months, down 5.6 per cent in May, figures from ANZ showed.

Some attributed the fall to businesses possibly delaying hiring staff until finer details of the budget emerge.

ANZ senior economist Justin Fabo said the key question now was whether the fall in job ads was largely temporary.

"If it isn't, this will be a risk to our forecast that labour demand will improve slowly this year," he said.

The unemployment rate was steady at 5.8 per cent in April, after hitting six per cent in January and February.

Mr Fabo said economic activity appeared to have slowed after picking up steam in the first three months of the year.

"In particular, consumer spending has slowed and housing market activity has cooled somewhat, both at the same time that resources investment is falling sharply," he said.

Mr Fabo said this uncertainty and weaker consumer confidence is likely to persist for some months.

Official jobs figures will be released on Thursday, with the unemployment rate expected to rise to 5.9 per cent in May.